(CNN) - Top White House economic adviser Alan Krueger is leaving the Obama administration and returning to Princeton.

"I am deeply grateful to President Obama for the opportunity to serve twice in this administration,” Krueger, the chairman of the president's Council of Economic Advisers, said in a statement on Tuesday. "It has been one of the highest privileges of my life to serve the American people."
Krueger was nominated to the position in August 2011.

Obama said in the White House statement that Krueger "was the driving force” behind many of his economic proposals.

"Over the past two years, Alan has been one of my most trusted advisers on economic policy and a great friend," he said.

"While we have more work to do, today our economy is improving – thanks, in no small part, to Alan’s efforts," the president added.

Krueger will return to his position as Bendheim Professor of Economics and Public Affairs at Princeton in time for the upcoming school year, the White House said.

He had previously worked in the Obama administration as assistant Treasury secretary for economic policy during the financial crisis.

At the Treasury Department, he worked on an effort to spur small business credit and the popular Build America Bonds program, which made it cheaper for cities and towns to issue bonds to kick-start new construction.

According to the White House, Krueger also played a role in the cash-for-clunkers program, which spurred U.S. car sales by offering government-backed rebates to consumers on trade-ins for more fuel efficient vehicles.